The September 2015, Issue 26 of KPMG ISG’s IFRS Newsletter: Financial Instruments – The Future of IFRS Financial Instruments Accounting summarizes the September IASB meeting at which the Board discussed its project about financial instruments with characteristics of equity, specifically, classification between liabilities and equity for non-derivative financial instruments. The Board discussed whether the requirements in IAS 32, Financial Instruments: Presentation, capture the features of those instruments that users need to consider to make their assessments. The Board also considered three possible classification approaches for non-derivative financial instruments. The Board did not reach decisions, and will consider classification of derivatives at a future meeting.
The Board also decided to consult with stakeholders on a package of temporary measures to address concerns about implementing IFRS 9, Financial Instruments, before the forthcoming insurance contracts standard is effective. The IASB will publish an Exposure Draft describing these measures later this year. KPMG’s ISG will summarize these discussions in a future IFRS Newsletter, which is scheduled to be published in October.